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Iraq agrees to pay Kurdistan region share of federal budget.


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Iraq agrees to pay Kurdistan region share of federal budget

 

Move seen as a positive step towards normalising relations between Baghdad and cash-strapped Eribl

 
  Iraq has agreed to resume monthly payments of its federal budget to the Kurdistan Regional Government in Erbil.

The deal represents a positive step towards restoring relations between the central government and the autonomous Kurdish region, which held a vote for independence in 2018 that the central government swiftly crushed.

The core of their outstanding issues has been Baghdad's halting of Erbil's share of the national budget.

“I am pleased to announce that Baghdad has agreed to pay IQD 320 billion ($268m) monthly as a partial restoration of our share of the federal budget. We are in agreement on both parties’ constitutional rights and duties, and dialogue will continue,” Kurdish Prime Minister, Masrous Barzani, wrote on Twitter late Sunday.

 

Baghdad’s halting of payments to the KRG heightened pressure on the already cash-strapped provincial government, which is struggling in the low oil price situation due to the outbreak of the coronavirus pandemic.

 

The spread of the virus has pushed Iraq's economy to the brink of collapse, especially with renewed public anger and social unrest.

Over 90 per cent of the country's budget depends on oil export, with the price of $56 per barrel. But oil revenues dropped dramatically due to the start of coronavirus and economies around the world, including Iraq, were hit badly.

In addition, Iraq's economy had already been affected by mass anti-government protests over poor services and corruption that began last October.

Since then the government has struggled to pay salaries and was forced to delay projects and is working to introduce unpopular financial reforms.

Under the constitution, the Kurdish region is entitled to a share of the national budget. But that arrangement collapsed in 2014, when Iraq’s army fled the north in the face of an advance by ISIS.

The Kurds seized control of Iraq’s main northern oil fields at Kirkuk from ISIS and began selling Kirkuk’s oil independently.

In response, Baghdad stopped sending money to the KRG.

Iraq’s Prime Minister Mustafa Al Kadhimi and Mr Barzani agreed to resolve any outstanding issues between the two sides under the constitution, KRG spokesperson Jotiar Adil said on Facebook.

Previously, Baghdad has said that the Kurdish region conducts independent oil sales, although it has far less oil to sell without control of Kirkuk.

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KRG PM BARZANI ANNOUNCES 'PARTIAL RESTORATION' OF PAYMENTS FROM BAGHDAD AMOUNTING TO 320BN IQD

Deal reached after call with Kadhimi
 

9 Hours ago

 

SULAIMANI — Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani announced in a late-night tweet on Sunday (August 16) that Iraq’s federal government has agreed to resume limited budget transfers four months after it cut payments in response to the KRG’s failure to live up to its obligations under the 2019 Federal Budget Law.

“After a call with [Prime Minister Mustafa al-Kadhimi] today, I am pleased to announce that Baghdad has agreed to pay IQD 320bn [$268.2 million] monthly as a partial restoration of our share of the federal budget,” Barzani said in a tweet that included his personal initials.

“We are in agreement on both parties’ constitutional rights and duties, and dialogue will continue,” he added.

While far from resolving the KRG’s significant financial difficulties, it will likely be seen as a welcome development for the cash-strapped government, the Kurdistan Region’s investors, and its beleaguered public sector workforce.

Under the terms of the 2019 Federal Budget Law, the Region is supposed to receive 12.67 percent of the budget, in return for transferring 250,000 barrels of crude oil per day to Iraq’s oil marketer for export. The KRG never sent any oil, but the federal government was nevertheless obligated to send money monthly to pay for public sector salaries under a provision of the law and did so for fifteen months.

The timing of Baghdad’s decision to cut off budget transfers in April came at a time of acute economic pain for the Region, which was facing the collapse of global oil prices and the effects of the coronavirus pandemic, giving the federal government significant leverage to seek a comprehensive budget agreement that would resolve many of the long-running disputes that have plagued relations between the two capitals.

During the spring, federal and KRG negotiators met several times, but have not held face-to-face talks since late-June, with a scheduled trip scrapped in July.

Nevertheless, discussions continued, with control over the customs procedures at the Region’s crossings with Iran and Turkey taking on increased prominence amid Kadhimi’s push to reassert centralized state control over Iraq’s border points and reduce smuggling and revenue expropriation by political parties, tribes, and militias.

Barzani did not reveal details of the agreement in his tweet or whether concessions were made related to the customs issue.

For many in the Kurdistan Region, however, the news raises hopes that they will be paid this month.

Since February, Erbil has only paid public servants twice: in May and in July, when it cut nearly a quarter of the take home pay of employees making more than 300,000 Iraqi dinars ($251) per month.

The government is the Region’s most important employer, supplying the incomes of hundreds of thousands of people. Erbil’s failure to live up to its obligations has sparked several rounds of protests and labor strikes, in particular by doctors and traffic police.

It is estimated that the KRG requires 894 billion Iraqi dinars ($749.3 million) to pay its public sector wage bill, about half of which, 452 billion dinars, had been supplied by Baghdad before April. The 320 Iraqi dinar figure is a significant reduction from that level, suggesting that much remains to be done before a comprehensive budget agreement can be reached between Erbil and Baghdad.

Beyond what it owes to its people, the KRG also carries significant foreign and domestic debt and has delayed payments to international oil companies operating in the Kurdistan Region.

The newly announced infusion is far from sufficient to pay the government’s full obligation, but the cash and the prospect of further talks will take some of the pressure off for now.

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The Englishman - Iraq agrees to pay Kurdistan region share of federal budget .................................................................................

1 hour ago, The Englishman said:

 

Thanks for these great Articles Englishman...here's hoping...RON

Edited by ronscarpa
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1 minute ago, stanleypower said:

Come on guys. Let’s hear the comments. Doesn’t this seem big news? Especially after the news the past couple days that the Kurds walked out???

It's definitely another piece to the puzzle. If my memory serves me correctly, this was the only piece missing to the HCL a few weeks back when they were meeting about it.

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1 minute ago, The Englishman said:

Thanks for these great Articles Englishman...here's hoping...RON".

 

Your welcome Ron.

It would be nice if just one day someone will post " deal done & signed, all issues resolved in full, on the conclusion of the new oil & gas law which has come into effect.

One day eh!!

 

I totally agree with you ... Baghdad & Kurdistan agree to something, then keep going back and forth. Here's hoping that this is the key to them finally getting it resolved - and as you said "DONE...!"  Blessings...RON:salute:

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Stanleypower  Come on guys. Let’s hear the comments. Doesn’t this seem big news? Especially after the news the past couple days that the Kurds walked out???

 

I'm excited they are making progress.  The Kurds seem to know how anxious Baghdad is to get this settled and have been holding out for top numbers, but in the end they are all losers if they can't reach an agreement.

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It seems like they’re headed in the right direction at least. Like they’re actually trying to resolve these issues for a purpose. I’m not saying that the meeting with trump is it but it seems like we’re assisting and they’re following someone else’s lead. Not sure if I’m expressing this correctly. 

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I hope the meeting goes as planned, now that the Presidents brother has died, it could throw a monkey wrench in this weeks planned visit! Our deepest sympathy for President Trump and his family on the loss of brother! God continue to bless and protect President Trump and his family! I know if I lost my brother, it would be tough for me to maintain a schedule! ☹️JMHO 

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42 minutes ago, Artitech said:

I hope the meeting goes as planned, now that the Presidents brother has died, it could throw a monkey wrench in this weeks planned visit! Our deepest sympathy for President Trump and his family on the loss of brother! God continue to bless and protect President Trump and his family! I know if I lost my brother, it would be tough for me to maintain a schedule! ☹️JMHO 

Amen Artitech!

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132226.jpg.05c6101068a6d0b0b5ed20594477ea41.jpg
 
08/16/2020 20:35
 

Text of the agreement concluded between the federal government and the Kurdistan region

https://almasalah.com/ar/news/196305/نص-الاتفاق-المبرم-بين-الحكومة-الاتحادية-وإقليم-كردستان

Baghdad / The Obelisk: The Massalla News Agency obtained a document of the text of the agreement concluded between Baghdad and Erbil, which was announced last Saturday, in a phone call between the Iraqi Prime Minister, Mustafa Al-Kazemi and the Prime Minister of the region, Masrour Barzani.

On Saturday, August 15, 2020, the Iraqi federal government agreed to unify the procedures of the air, sea and land border crossings, agree on customs accounting, and install a technical team of employees of the two governments to monitor the implementation of the agreement.

The agreement also included the unification of customs procedures and ports in the region with the outlets of the federal government, and the development of accounting systems to fulfill customs imports collected at the ports of the region and dispose of them in accordance with Federal Financial Management Law No. 6 of 2019.

As well as setting controls that the two parties are obligated to control the entry of import materials into Iraq.

The two governments are committed to the policy of oil production within the OPEC Plus agreement, according to proportions.

It was also agreed to finance the region at an amount of 320 billion dinars per month for the months of August, September and October, to pay some of the region’s expenses.

The agreement stipulates that in the coming years it will be agreed to set an amount in a fair percentage from the federal budget for the Kurdistan region through the introduction of constitutional standards, population ratios, and the region’s oil and non-oil imports in the previous year.

The agreement document, which will be in effect until the federal general budget for 2021 is approved, stipulates that within 35 days of this agreement, an agreement will be concluded on a mechanism for the payment and scheduling of payment of the TBI's debts owed to the region, as well as processing the region's previous debts, provided that the region does not object to providing all information. Required to develop an action plan to address it.

Regarding the issue of auditing the accounts, the agreement provides for the formation of a joint committee from the Office of Financial and Federal Supervision and the region to deal with the issue of accounts entailed by the two parties and agree on methods for settling accounts between the federal government and the regional government and from the accounts of the year 2014 until 2020, and the region provides all the information requested by the federal government .

 

Edited by 6ly410
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147004.jpg.776fd37fc5417516839204829d274464.jpg
 
08/16/2020 16:40

Dependent on Al-Kazemi's realistic and balanced policies .. Masoud Barzani: The opportunity is ripe to solve the problems between Baghdad and Erbil within the framework of the constitution

https://almasalah.com/ar/news/196294/معولا-على-سياسات-الكاظمي-الواقعية-والمتوازنة-مسعود-بارزاني-الفرصة-سانحة-لحل-المشاكل-بين-بغداد-وأربيل-في-إطار-الدستور

 

Baghdad / Al-Masala: The President of the Kurdistan Democratic Party, Masoud Barzani, confirmed, Sunday, August 16, 2020, that the opportunity is still available with Prime Minister Mustafa Al-Kazemi to resolve the outstanding issues between Baghdad and Erbil, in a clear reliance on the realistic and balanced policies of Prime Minister Msafat Al-Kazemi.

Barzani said in a message he addressed to the Kurdish people, on the occasion of the seventy-fourth anniversary of the founding of the KDP, that the KDP affirms throughout its history of struggle and politics, it did not refuse to negotiate, and wanted to address the problems through understanding and peaceful means, and at the present time, we affirm the continuation of the same approach.

He added that the struggle of the Kurdistan Democratic Party will be with Kurdish militants and patriots in order to establish the constitutional rights of the people of Kurdistan, and in order to confront the ideology and mentality that wants to marginalize the struggle and sacrifices of the people of Kurdistan and their partnership within the state of Iraq, indicating that we are well aware that the current existence does not match the level The massive sacrifices and liberation aspirations of our people.

Barzani added that we believe with Mustafa Al-Kazemi, the current prime minister of Iraq, who has an understanding of the issue of the people of Kurdistan. Not present now between Erbil and Baghdad.

Barzani added, saying: On the seventy-fourth anniversary of the establishment of the Kurdistan Democratic Party, we bring back to the minds of dear Kurdistans that the KDP is a product of the unity of the Kurdish struggle will, and was not born as a result of a split, so it is a symbol and center of unity and the unity of the will of the people of Kurdistan.

The President of the Kurdistan Democratic Party called on his party and the Kurdish political parties to work together in a spirit of brotherhood, and to assume responsibility in order to overcome the challenges and problems that threaten the Kurdistan region, stressing the truth of the importance of salaries in the lives of citizens, and the need for everyone to cooperate for the sake of general reform in the Kurdistan region Iraq is dealing with problems and trying to improve the living conditions of citizens. Nevertheless, there are other serious basic problems that cannot be ignored or accepted, such as the principle of partnership, implementation of the constitution, Article 140, Peshmerga, the policy of cleansing and demographic change, all of which have a special priority and importance, and the problems of the people cannot be summarized. Kurdistan is only in salaries.

He pointed out that the process of Arabization in the Kurdish regions that began in the twentieth century, unfortunately, and is still continuing in various ways, must stop that treacherous process as soon as possible and address that cleansing, Arabization and demographic change that was implemented against the Kurds in the Kurdish areas that are outside the administration of the region .

He believed that it is necessary for me to call on the Kurdish forces in other parts to take into account the conditions of the Kurdistan region, and not to turn into factors to harm the Kurdistan region, because the people of Kurdistan no longer bear more losses, bombings and other problems, calling on neighboring countries and Kurdish forces to respect the sovereignty of the region Kurdistan and Iraq, and not to turn the Kurdistan region into an arena for conflict between them.

Obelisk

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Learn about the terms of the new Baghdad-Kurdistan agreement

 

 

Baghdad
2020-08-16 14:11

 

https://www.shafaaq.com/ar/كوردســتانيات/تعرف-على-بنود-اتفاق-بغداد-وكوردستان-الجديد

On Sunday, Shafaq News Agency obtained documents of the agreement between the federal and regional governments, after months of negotiations.

The agreement includes 7 points related to customs, the Kurdistan region’s share, and the energy file.

 

And Iraqi Prime Minister Mustafa Al-Kazemi decided on Saturday to send an amount of 320 billion dinars as part of the salaries to the Kurdistan Region as soon as possible, and this came in a phone call with the Prime Minister of the region, Masrour Barzani.

Today, Sunday, Minister of the Region Khaled Shawani revealed new details regarding the financial and economic benefits in the agreement reached by the Prime Minister of Kurdistan Region, Masrour Barzani, and the Prime Minister of the Federal Council Mustafa Al-Kazemi.

Shwani said in a statement received by Shafaq News, that the agreement will continue until the fiscal budget law for 2021 is approved, indicating the start of a new phase of negotiations on the budget for next year.

He explained that according to the agreement, 320 billion dinars will be sent per month to the Kurdistan Region until the budget is approved in 2021.
 

The text of the agreement concluded between the Iraqi government and the Kurdistan Region

 
 
No photo description available.Image may contain: textNo photo description available.
 

 

Edited by 6ly410
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image.png.481906422737f257e5e3b1bffb3257d6.png

 

There is Chance ( after all this time this is the best he can give to his people ??? )for Peaceful Solution to Erbil-Baghdad Disputes: Barzani ---- THIS crooked as a dogs hind leg, A-Hole POS is part of the problem

 

Dependent on Al-Kazemi's realistic and balanced policies .. Masoud Barzani: The opportunity is ripe to solve the problems between Baghdad and Erbil within the framework of the constitution ---- This criminal fool would like nothing better than to see the status quo remain

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1597651849202.jpg

Al-Hakim to support Baghdad-Erbil agreement under on conditions

  •  
 2020-08-17 09:11
 

Shafaq News / The coalition of "Iraqioon" led by Ammar al-Hakim announced its support for any agreement reached between the Kurdistan Regional Government and the federal government to resolve differences and outstanding issues.

 

A statement issued by the leadership of Iraqioon said today, Monday, that it held a meeting headed by, Ammar al-Hakim, and discussed the topics of early elections, the visit of Prime Minister to Washington, unifying the media speech, in addition to discussing the relationship between Baghdad and Erbil.

 

The statement added that the meeting confirmed the importance of preparing for just elections away from political money or weapons, in addition to completing the procedures related to the House of Representatives, such as the election law and the Federal Supreme Court role.

 

With regard to Al-Kadhimi's visit to Washington, the meeting stressed the importance of opening up Iraq to everyone and establishing the best relations based on common interests, mutual relations, respecting the sovereignty of Iraq and refusing to make it a starting point or a pathway to threaten regional security or neighboring countries.

 

Regarding the relationship between Baghdad and Erbil, the meeting affirmed their support for any agreement insuring the benefit of all Iraq components.

The statement also declared that any dialogues between the federal government and the regional government should base on the Iraqi constitution.

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